Unused PTO isn't just a missed benefit for employees, it's a growing financial liability sitting quietly on company balance sheets. In a new piece for Accounting Today, PTO Exchange's Steve Armstrong breaks down just how large that liability has become, and why CFOs need to treat it as an urgent priority rather than a line item to manage passively.

The math is stark: PTO now represents roughly a quarter of total benefits costs, translating to about $7,600 per full-time employee. With only 22% of employees using all their available time off, that liability compounds year over year, an employee with just 32 unused hours at $50/hour creates a $1,600 balance sheet obligation, a number that multiplies fast across a workforce of any real size. States that ban "use it or lose it" policies only add to the exposure, while ad hoc cash-out programs can create their own tax and compliance risks under IRS constructive receipt rules.

Armstrong's core argument is that this requires both a cultural and a structural fix. Companies need to genuinely encourage employees to take the time off they've earned, while also giving them flexible, compliant ways to redirect unused PTO toward priorities like retirement contributions or student loan payments. Done right, this approach doesn't just reduce balance sheet risk, it directly addresses the financial stress driving disengagement and turnover across the workforce.

Read the full piece here: How CFOs Can Defuse the Time Bomb of PTO Liabilities